Tata plans to sell Nano in US

Tata Motors has started work on plans to launch the Nano, the world's cheapest car, in the US in a change of strategy made possible by the deep recession there.

Ratan Tata, head of the Tata group, said that tough times in the world's largest car market had convinced the group to start designing a version of the Nano for possible export to the US as early as 2011 or 2012.

Mr Tata said he had once viewed the US, with its exacting consumers and obsession with large cars, as unsuitable for the diminutive Nano. However, he said: “In this economic situation, we see perhaps there is a place [for the Nano in the US].”

The Nano was launched in India yesterday with a starting price of Rs100,000 ($1,980) before transport charges and tax. Tata plans to sell a version of the Nano in Europe from 2011.